Engineering giant Larsen & Toubro (L&T) on Wednesday (18th February) announced a proposed venture with NVIDIA under the IndiaAI Mission to build sovereign, scalable GW-scale AI factory infrastructure to “reinforce India’s position as a global AI powerhouse. The announcement was made at the ongoing five-day India AI Impact Summit 2026.
“This partnership is aimed at India’s enterprises, policymakers, industry leaders, global off-takers and analysts seeking production-grade AI capacity anchored in India’s digital and industrial transformation,” said a statement by Larsen & Toubro.
According to the statement, the venture will integrate L&T’s engineering infrastructure development and execution with NVIDIA’s AI infrastructure, its GPUs, CPUs, and networking, etc. It said that the venture’s goal is aligned with the IndiaAI Mission. “In alignment with the IndiaAI Mission, this venture will support the creation of sovereign AI infrastructure that allows critical data, models and AI workloads to be built, trained and deployed within India, while remaining interoperable with global ecosystems,” the statement added.
Furthermore, the venture intends to serve domestic requirements, global hyperscalers, cloud providers and enterprises looking to deploy large-scale AI capacity from India as a strategic hub. It aims to develop a gigawatt-scale AI data centre factory, providing AI-ready capacity for high-density, next-generation workloads so customers can expand in India efficiently and sustainably. The venture plans to scale NVIDIA GPU cluster deployment at its Chennai DC up to 30 MW capacity in its 300-acre, Gigawatt-scalable campus and at the new 40 MW Datacenter in Mumbai, presently under execution.
Once the AI factory infrastructure is built, it will be able to deliver advanced AI services to global off-takers, hyperscalers and India Inc, including manufacturing, infrastructure, energy, financial services, healthcare and public services, thereby moving from experimentation to production-scale deployment.
“This will also enable L&T and its Group companies to deploy live AI agents on Sovereign Cloud, fostering a self-sustaining innovation hub like LTTS’s Lights-Out Factory framework that leverages NVIDIA Omniverse libraries to transform industrial operations, LTM’s Blueverse and LTFS’s agentic AI deployment, along with L&T’s own AI agents developed for internal consumption,” the statement read.
Commenting on the proposed venture, S N Subrahmanyan, Chairman & Managing Director, L&T, said, “India’s enterprises are ready to move from AI pilots to production-scale deployment. The investment establishes the foundation — secure, scalable, and sovereign infrastructure — required to power manufacturing, energy, financial services, healthcare and public services. With NVIDIA’s platforms and L&T’s execution strength, we are building infrastructure that will enable AI to deliver measurable economic impact.”
NVIDIA Founder and CEO, Jensen Huang, remarked, “AI is driving the largest infrastructure buildout in human history — everyone will use it, every company will be powered by it, and every country will build it. Prime Minister Modi has outlined a bold vision to democratise AI access across the Global South and position India as a global hub for digital infrastructure. Together with L&T — an 88-year-old engineering and nation-building leader — we are laying the foundation for world-class AI infrastructure that will power India’s growth and help realise the full vision of India AI.”
